2 initiatives: a) plant modification leading to 3rd production stream, increase ROM volumes by 10-15%. Expected January 2019; and b) development of N Adit, testing q1 2019 and get IWUL granted q1 leading to increase in ROM by 20%. Expected 2020;

Uitkomst has been incredibly profitable, in 24 months time these developments would see Uitkomst cover all company’s overheads by itself;

Mooiplaats:

Sale made and all agreements in place so will receive balance of sale proceeds;

Putting 1) and 2) together, i.e being in production, reduced liabilities and revenue coming in means they are very credible, viable business and banks giving the various loans financing. Definitely a sea change on that front, which leads onto:

Makhado:

Super-excited about this. Acquisition of 2 farms has led to this move sharp higher in share price and more to follow. Debt financing framework to be agreed by February . They then plan to present plan for execution to the board in March.

A significant increase in share price when plans are released.

Before then, the board anticipates they will have another off-take agreement signed for hard coking coal before end of year, hopefully in next two weeks with ArcelorMittal. David Brown said Arcelor in main AGM presentation so that’s public information plus they’re a share holder so expected they would have off-take agreement;

Very confident the last remaining regulatory piece, the Environmental Authorisation appeal will be overturned by February;

Funding has been underpinned by marketing of hard coking coal. Cash generative very quickly, will be predominantly debt financed. New CFO (Brenda Berlin) has provided fresh impetus in terms of debt funding;

They’ve got on the Lukin and Salaita farms and checked everything secure etc in terms of fencing and security. They can get on with geological testing etc in February;

CGA acquisition:

Still doing due diligence on couple of potential targets. Nothing new but it’s now a 3rd not 2nd CGA.

Vele to come back into play at some point, especially with SEZ;

GSP, of the 3 coal fields, expects mining rights to be granted this year for 2 of them this year, other one in 2019. Local community there have investment with Makhado so supportive but 5-10 year plan;

Institutional investors buying in, as that was part of point of the share consolidation. They’re starting to see some interest, the board were speaking with groups in March before government land expropriation failed. Obviously no interest after that.

David Brown (CEO) is presenting at a mining Indaba in the new year and has number of potential investors lined up.

Chinese still keen on the project and pushing it forward, company seem to have a very good working relationship with members of SA government."

It finally looks as though patience may be rewarded. May your investments be profitable.